a lot of this post I agree with but a lot of the forward thinking is nothing more than our wishful thinking, as we have nothing structural that would influence a permanent re-rate, yet.
I also agree that we can expect a large next quarter, which happens to also be at our HY report. Yes it might show continued growth, but there is a significant risk of the vendor, user, ttv and revenue growth being drowned out by the expenses, growing loss and lack of cash. If investors think a cap raise is imminent, then it is unlikely to see a permanent re-rate, but likely to see another pump and dump on the first spike imo.
UK, Poland, Czech Republic, Dubai, South Africa and Philippines should also be monitored for growth v expenses and should not be forgotten as I am interested to see how these acquisitions pan out and their impacts on bottom line.
Notably, Poland and Czech are both tipped to raise rates this week, with Poland increasing for the second time since 2012 (having inflation hit 5.8 and highest in 20 years). @Goodfella58
Central Europe are feeling the inflation pressures too, with Czech looking to raise its rates again, having just raised them to the highest in 24 years.
Zip have also hinted at more acquisition in Asia are likely, as they continue to “actively look at Singapore, Malaysia, Thailand, Philippines and India”
As an investor, I have less interest in how many countries zip is in and how marvellous the tech is, than I do how much cash they have, the likelihood of future dilution, bad debts, expenses, global macro conditions, and more importantly the balance sheet ratios.
I have always been pro dilution on growth stocks when the dilution is offset by the capital growth, however this hasn’t happened with zip, and with twisto and spotti dilution to hit market at $6-$7 range, and (IMO) with a capital raise likely in the next 6-12 months, it makes me concerned about wanting to throw more money at this and accumulate my LT position.
(20min delay)